Minneapolis Real Estate Market Analysis: December 2008

It’s that last real estate market analysis for Minneapolis for the year of December 2008!  Let’s get to it! The number of new listings in Minneapolis has declined compared to 2007 again during the month of December, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities.  There were 555 new listings last month, while in December 2007, there were 567 new listings, a decrease of just -2.1%. The Northeast, Powderhorn, and University Area communities saw increases in new listings while the rest of the Minneapolis areas saw decreases in new listings.  Here is an inventory of December 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to December 2007 (Previous Barker & Hedges article about November 2008 Minneapolis Real Estate Market Activity.)

Camden 102 (+ 4.1%)
Downtown Minneapolis 58 (-1.7%)
Longfellow 27 (-15.6%)
Nokomis 55 (-6.8%)
North 88 (-24.1%)
Northeast 44 (+18.9%)
Phillips 14 (-0.0%)
Powderhorn 54 (+35.0%)
Southwest 51 (+4.1%)
University Area 12 (+50.0%)
Uptown-Lakes 52 (-7.1%)

Minneapolis’ posted new listing for the whole of 2008 end well behind 2007’s statistics.  From January through December of 2008, there were 11,047 new listings, compared to the 12,633 homes put on the market throughout the year of 2007, a decrease of about -12.6%. The greatest declines in new listings happened in the Uptown-Lakes, Downtown, and Nokomis communities.  The North, Phillips, and Powderhorn communities saw increases in posted new listings for homes over the year.  Here is a demonstration of new listings in Minneapolis by community for the 2008 year to date and the percentage of change that has occurred compared to 2007:

Camden 1,626 (-1.4%)
Downtown Minneapolis 1,352 (-24.6%)
Longfellow 615 (-8.3%)
Nokomis 1,197 (-25.1%)
North 1,387 (+1.1%)
Northeast 834 (-16.6%)
Phillips 319 (+13.9%)
Powderhorn 938 (+20.1%)
Southwest 1,334 (-14.7%)
University Area 237 (-14.4%)
Uptown-Lakes 1,200 (-26.7%)

Closed sales within Minneapolis jumped compared to 2007 in December.  There were 367 properties sold, a whole +26.1% more than the 291 houses sold during December in 2007. For the 2008, Minneapolis ends the year with more closed sales above the level of the previous year.  In 2007, there were 4,978 homes sold, while in 2008, 5,252 homes were sold. That is a +5.5% increase!  Homes have been selling like crazy in Camden, North, and Powderhorn communities. Here are the closed home sales that occurred with Minneapolis in December, broken down by community:

Camden 77 (+208.0%)
Downtown Minneapolis 30 (-47.4%)
Longfellow 22 (+69.2%)
Nokomis 45 (+2.3%)
North 46 (+91.7%)
Northeast 32 (+18.5%)
Phillips 10 (+150.0%)
Powderhorn 33 (+120.0%)
Southwest 42 (-6.7%)
University Area 5 (-16.7%)
Uptown-Lakes 26 (-13.3%)

The average prices of homes sold in Minneapolis have continued to fall.  Last month, the average price of a home sold within Minneapolis was $161,374, compared to the $273,128 homes were selling for in December 2007.  That is a decrease in price of -40.9%. The sales prices of homes sold in Downtown and Lonfellow Minneapolis communities have risen slightly. The average sales price of homes sold in Minneapolis throughout 2008 was $210,617.  From January to December of 2007, that number was $261,565. The percentage of Minneapolis homes which sold at their original list price was 89.9% during the month of December, down from 91.4% in 2007. Average prices of homes sold in Minneapolis by community during December 2008:

Camden $58,146 (-20.5%)
Downtown Minneapolis $422,461 (+7.4%)
Longfellow $174,913 (+0.5%)
Nokomis $185,768 (-12.0%)
North $51,619 (-45.8%)
Northeast $137,642 (-21.7%)
Phillips $80,539 (-52.5%)
Powderhorn $79,514 (-39.8%)
Southwest $231,976 (-40.1%)
University Area $223,941 (-9.0%)
Uptown-Lakes $286,519 (-33.4%)

Finally, homes for sale in Minneapolis were on the market for an average of 127 day before they sold in December. In 2007 during December, Minneapolis homes were on the market for an average of 113 days before they were sold.   The statistics vary based on neighborhood and the types of housing on the market. Condos and town homes are selling much more quickly, while single family homes will stay on the market for much longer.

This is a brief analysis of the Minneapolis real estate market based on calculations by the Minneapolis Area Association of Realtors. These statistics do not reflect each individual situation of course.

Browse homes for sale by Minneapolis community:
Calhoun Isle Real Estate
Camden Real Estate
Central Minneapolis Real Estate
Longfellow Real Estate
Phillips Real Estate
Powderhorn Real Estate
Near North Real Estate
Nokomis Real Estate
Northeast Real Estate
Southwest Real Estate
University Real Estate

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